The Future of Active Adult Communities with Gregg Logan
By Gregg LoganCommunity & Resort
Deciding to buy a new home or move to a new community is often precipitated by a change in lifestage. As the massive wave of Boomers enters the retirement phase of their lives, there is much speculation about their impact on the demand for retirement housing. Surveys suggest that up to two-thirds of this diverse generation will move during retirement, perhaps to a home that better suits their needs in a multigenerational community, or to a home specifically designed to meet their needs within an Active Adult Community (AAC). Boomer homebuyers currently represent about a third of all home sales, with many saying they moved to be closer to friends and family, or because they wanted a smaller or lower maintenance home.
Recent surveys have suggested that Boomer retirees are different than previous generations, because only a small percentage of them say they want to move to a retirement community. But it has always been the case that AACs cater to a niche market. Back in 2010 Del Webb found that only about 20% of 64 year olds said they wanted to move to an age-restricted community. Yet some of the most successful planned communities nationally have had great success with age-restricted AACs, demonstrating that a small percentage of a large population is still a very significant market. There is also little doubt that a large market exists for homes that are better designed for retirees but are located within multigenerational communities.
The Boomers are a generation that for the most part grew up in the suburbs, and while some are now seeking more urban environments, most still prefer suburban places—especially those with a mix of housing, shopping, and services. In this video, Gregg Logan, Managing Director of RCLCO’s Community and Resort Advisory Group, talks about how the current Boomer retiree wave represents both a challenge and an opportunity, to be innovative and fresh while still capitalizing on the enduring elements of successful AACs, which include:
1) Lifestyle – created through social and recreational amenities and programming
2) Value – offering a good investment at prices consistent with buyers’ current home equity
3) Mix – combination of housing product, community design, location, and amenities
Click to watch Gregg Logan discuss the importance of rethinking the formula for this current wave of retirees to find success in the marketplace, and share some examples of builders and developers that are doing this.
RCLCO provides real estate economics, strategic planning, management consulting, litigation support, fiscal and economic impact analysis, and implementation services to real estate investors, developers, home builders, financial institutions, public agencies, and anchor institutions. Our real estate advisors help clients make the best decisions about real estate investment, repositioning, planning, and development.
RCLCO’s advisory groups provide market-driven, analytically based, and financially sound solutions. RCLCO’s Community & Resort Advisory Group produced this newsletter. Interested in learning more about RCLCO’s services? Please visit us at www.rclco.com/community-and-resort.